Expenses

Almost everything costs money! Expenses are the cost of things that you must pay for in order to live, eat and go to college. Some expenses are fixed, meaning that they are determined by outside sources and you have little or no control over them. However, many expenses are flexible which means you have more options and can make choices that can affect your financial situation. And of course there are always the extras which are the things you spend your money on after everything else is taken care of.

It is important to understand and identify all the expenses that you currently have and will encounter when attending college so that you can make good choices and plan for the future.

Types of expenses:

Fixed Expenses

Fixed Expenses are those expenses that are not only determined by outside sources, but more importantly, have little or no wiggle room when it comes to your personal choices. Some examples of fixed expenses are:

  • Registration Fees - These fees are set by the University and often represent a major portion of your expenditure budget.

    • Tip: Many Universities offer fee installment plans that may help you budget this expense over a period of time during the semester or academic year.
    • Tip: You can reduce the cost or your fees per semester by enrolling part-time.  Or Trap? Remember - it will take you longer to reach your degree this way and you will end up paying more for your education.

  • Books and Supplies - The courses you take will determine these costs. In some majors, like Engineering, books can be very expensive. While these expenses will vary a little from year to year, they are considered to be fixed as you cannot be expected to choose your major based on the costs associated with required books and supplies.

    • Tip: Although it may take some time and perseverance, many books can be purchased used or on-line at a considerable savings.   And don't forget - if your textbook is going to be used by the same professor the next semester, you might be able to sell it back and get some extra end-of-the-semester cash!

  • Where to Live - Most times you have a choice on where you are going to live while attending college. Staying at home may be an option, but if it isn't, you will need to consider on-campus dorms or off-campus housing. Dorm availability and the housing market in the area of your college may limit your choices and options, and can directly affect the cost of your housing.

    • Tip:   Having one or several roommates can help defray the cost of an apartment or house.  Or Trap? But, be careful! Along with apartment and house living comes a lot of extras like utilities and   commute expenses. See the flexible expenses section of this website for more discussion on these and other "hidden costs".

  • Health Insurance - This is probably something that you haven't had to think of up to now as you were probably covered by your parents or spouse's insurance program. However, this may not be the case once you become a college student. It is important to have some type of health insurance as without it, you may end up spending far more in the event you need medical or dental care.

    • Tip: Most colleges and universities offer some type of health insurance.   Designed specifically for college students, costs will vary depending upon the level of coverage. Check with your student health center or student government association to see what plans are available at your campus!

  • Prescription Medications - If it is necessary for you to take prescription medications that are not covered by your health insurance, you need to make sure you account for the on-going expense of these medications.

    • Tip: You may be able to save some money by using generic forms of your medication if available. Consult your physician regarding your options!

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Flexible Expenses

Flexible Expenses are those expenses that can be greatly affected by your choices. This means that you should be able to find ways to save money on each of these line items.

  • Groceries - Everyone needs to eat - right? Yes, food is essential, but what you buy and how you buy it can make a big difference in your food budget!

    • Tip: Make a list and buy only what you need
    • Tip: Take advantage of sales, use coupons and buy in bulk
    • Tip: Split costs with roommates

  • Phone - Once considered a luxury, a phone has now become an essential part of daily life. It is important to keep track of your phone habits - especially long distance - and make sure your calling plan suits your needs.

    • Tip: Shop around for service - forgo the "bells and whistles" to save money

  • Utilities - Electricity, water, gas, - depending upon where you live, you may have to pay one or more of these utilities at rates determined by the utility companies. However, you can be a smart consumer and conserver by being thoughtful about your use of air conditioning and how long you spend in the shower!

    • Tip: A small electric fan is a good way to move air around and lower the temperature without using the air conditioner. Save that air conditioner for really hot days and save a few dollars off your utility bills!

  • Transportation - Your choice of transportation will determine what you spend in this category. You may be able to rely on public transportation and save a great deal of money. However, if you must have a car, the age and type of car that you choose can have a great impact (or not) on your budget. A new car will usually have lower maintenance costs than a used one, but it comes with a payment and higher auto insurance rates. And, that fancy sports car will cost you even more in payments and insurance than a commuter sedan!

    • Tip: Check out if your campus or community offers free or discounted public transportation. This can include campus/community shuttle buses and/or discounted or free transit passes.

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Extra Expenses

Extra Expenses are the types of expenses that generally come after you have paid for other - more essential things. You may disagree that the expenses listed here can be considered "extras" and that is okay, however because these expenses are still a reality for many people you may want to consider ways to save money in this category as well!

  • Eating Out - No one can deny the convenience factor of eating out. Based on your schedule, you may find that it is a worthwhile expense for you.

    • Tip: You can still save by buying bottled water or canned soda in bulk to have along with your food purchase
    • Tip: Limit the number of times you eat out each week.
    • Tip: Look for coupons in the newspaper for specials and "2 for 1" offers

  • Cable Television - Some people consider cable television as an essential, and you may be one of them. Carefully monitor your viewing habits - you may find you can get by with fewer TV shows, or channels - then make sure you choose a service package that best fits your viewing needs.

    • Tip: Instead of paying for a premium movie channel, maybe renting a movie now and then would be a better cost value.
    • Tip: Remember to be sure to split the expense with roommates who will be sharing the service.

  • Gifts - Although it is tempting to shower our loved ones with expensive gifts, sometimes it is more meaningful when you spend time instead of extra money. There are many ways to be creative with gifts - such as making something with your own hands, or taking the time to help someone with a project.

    • Tip: For purchased gifts, don't forget to shop sales and discount stores!

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